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The Union Cabinet is expected to have cleared a proposal to waive nearly all penalties and the bulk of interest levied on delayed spectrum payments by central and state government departments. The relief, which applies to dues running into several lakh crore rupees, covers key departments including defence, railways, the Department of Space (DoS), and the Ministry of Information and Broadcasting, which oversees Prasar Bharati, according to a report by the Economic Times, citing officials.
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Also Read: Cabinet Approves Spectrum Refarming for 5G and Future 6G Services
Charges Dating Back to 2004 Waived
The Cabinet has approved the waiver of approximately 95 percent of the interest along with all penalties on spectrum usage charges, dating back as far as 2004. These charges were originally subject to a high late fee of 24 percent, with compound interest applied annually. “The departments now need to pay the principal amount and a 5 percent interest on it and the rest of the dues are waived,” one official was quoted as saying in the report, adding that the Cabinet considered the proposal on Wednesday. However, the government’s press briefing after the Cabinet meeting did not mention any such decision.
The waiver applies exclusively to central and state government departments and excludes public sector units and private operators. These departments had received spectrum administratively from the Department of Telecommunications (DoT) and are liable for usage charges. However, delays in payment have led to the accumulation of significant dues over the years.
